Leveraging the internet directly Group d Chapter 4 Mike capko , Garrett gloss, mike talty

1. Leveraging the internet directly Group d Chapter 4Mike capko, Garrett gloss, mike talty

2. 1. Explain how selling direct has given Dell a competitive advantage. Use the factors listed in Figure 3-11 in your answer. • By selling direct, Dell is given a big competitive advantage. All three product implementations are being done with Dell. -Create a new product or service -Enhance products or services - Differentiate products or services. By selling direct dell created a new service by directly selling from manufacturers to customers creating cheaper prices.

3. 2. What information systems does Dell need to sell directly to the consumer? Visit www.dell.com for inspiration and details. • Dell uses the internet to its fullest to sell directly to the consumer. • On the website there are three different sections to help the consumer find what they are looking for. • They break it down • Which type of computer • How much storage • Type of operating system • Shipping rate • Without the internet this process would take much longer. Not to mention much more expensive.

4. 3. Besides selling direct, what other programs has Dell created that give it a competitive advantage? • Dells custom computers are shipped within 48 hours. • They also offer low-interest financing through Dell financing • 24 hour customer technical support for all computers purchased. • Bundle-pricing for schools such as the computers we have in this class and throughout the university.

5. 4. HP Vs. Dell • This does not always mean Dell computers will be cheaper than HP and other computers. • Make more by selling for less. -Selling more machines than Dell, at a lesser profit, will make up the overall advantage Dell has over HP. • The advertised price for Dell computers are usually for the low-end model, not containing some major upgrades that most people prefer. After adding the upgrades, the prices are not always cheaper than comparable computers made by other companies.

6. 5. Assume that because of the need to sell through a channel, HP’s computers will always be more expensive. How can HP successfully compete with Dell? • HP can successfully compete with Dell by building good relationships with its customers and offering better customer service and tech support than Dell. • If HP uses better technology and satisfies large companies needs for high performance machines, Dell cannot always compete. -Dell uses lower quality parts for their products. • Regarding the customer service aspect, companies have been able to provide better customer service than, cancelling out their price advantage. • Over the lifetime of a computer, the prices for customer service and repairs from Dell increase and practically eliminate any price advantage they had. • New Products gets new business

7. 6. What information systems can HP set up that competes with Dell? • To better compete with Dell, HP could set up a new information system that better deals with its existing customers and also new potential customers. • A new information system regarding customer service and more accurate product information and ordering details would make the customer happy and more inclined to buy from HP once, if not several times. • The downside to Dell as of late has been the decline in quality of its customer service. A better way to troubleshoot for customers would help propel HP forward.

8. 7. Do you think Dell would have been successful if the internet had not been invented? Not been invented? Why? • I think Dell would have been successful without the Internet, just not as successful as they are. • The internet has made it so easy for someone to order a Dell computer online, directly from the manufacturer. - Dell's advertising reaches all over the world on the Internet, not one specific region if it were in a newspaper, on TV, or on a billboard. • The Internet has improved the way we live, including shopping. While Dell achieved moderate success before the Internet was invented, the creation of the Internet took the company to unexpected heights. Choosing a computer out of a catalog or some other advertisement before the Internet would make me, as a consumer, a little nervous. • The Internet has made it possible to build your machine to whatever specifications you want instead of picking an item out of a catalog. • Enhance of shopping has also occurred with online shopping.